Current Rating and Its Significance
MarketsMOJO currently assigns Pfizer Ltd. a 'Sell' rating, reflecting a cautious stance on the stock's near-term prospects. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. For investors, a 'Sell' rating suggests that the stock may underperform relative to the broader market or its sector peers, signalling a need for prudence in portfolio allocation.
Quality Assessment
As of 01 February 2026, Pfizer Ltd. maintains a good quality grade. This indicates that the company exhibits solid operational fundamentals and a stable business model within the Pharmaceuticals & Biotechnology sector. Despite this, the company's long-term growth has been modest, with net sales increasing at an annual rate of just 2.01% over the past five years. Operating profit growth has been somewhat stronger at 7.55% annually, but this moderate expansion suggests limited momentum in scaling its core operations.
Valuation Considerations
Valuation remains a critical factor in the current rating. Pfizer Ltd. is classified as very expensive based on its price-to-book (P/B) ratio of 5.4, which is significantly above typical benchmarks. While the stock trades near fair value compared to its peers' historical averages, this elevated valuation implies that much of the company's growth potential is already priced in. Investors should note that the company’s return on equity (ROE) stands at a robust 18.3%, reflecting efficient capital utilisation. However, the price-earnings-to-growth (PEG) ratio of 2 indicates that earnings growth may not justify the premium valuation fully.
Financial Trend and Profitability
The financial trend for Pfizer Ltd. is currently positive. The latest data as of 01 February 2026 shows that the company’s profits have risen by 15.2% over the past year, signalling healthy earnings momentum. Additionally, the stock has delivered a modest 0.16% return over the last 12 months, which, while positive, is relatively subdued compared to broader market indices. The company also offers a high dividend yield of 3.6%, which may appeal to income-focused investors despite the cautious rating.
Technical Outlook
From a technical perspective, Pfizer Ltd. is currently graded as bearish. The stock has experienced downward pressure recently, with returns over the past month and quarter showing declines of 7.55% and 12.68%, respectively. Year-to-date, the stock is down 8.73%, reflecting a challenging market environment and investor sentiment. The short-term technical weakness supports the 'Sell' rating, suggesting limited upside potential in the near term.
Stock Performance Overview
Examining the stock’s recent performance as of 01 February 2026, Pfizer Ltd. has shown mixed results. While the one-day gain was a modest 0.48%, the one-week and one-month returns were negative at -1.05% and -7.55%, respectively. Over six months, the stock declined by 9.96%, and the year-to-date performance remains negative. These figures highlight the stock’s current volatility and the challenges it faces in regaining upward momentum.
Implications for Investors
For investors, the 'Sell' rating on Pfizer Ltd. signals caution. Despite the company’s good quality and positive financial trends, the very expensive valuation and bearish technical indicators suggest that the stock may face headwinds ahead. The modest long-term growth and recent price declines imply that investors should carefully assess their exposure to Pfizer within their portfolios, considering alternative opportunities that may offer better risk-adjusted returns.
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Sector and Market Context
Pfizer Ltd. operates within the Pharmaceuticals & Biotechnology sector, a space characterised by innovation, regulatory challenges, and evolving market dynamics. While the sector often attracts investors seeking defensive qualities and steady dividends, Pfizer’s current valuation and technical outlook suggest that it may not be the most attractive option at present. The company’s smallcap market capitalisation also means it may be more susceptible to volatility compared to larger peers.
Summary of Key Metrics as of 01 February 2026
To summarise, Pfizer Ltd.’s key metrics reflect a mixed picture:
- Mojo Score: 43.0 (Sell grade)
- Price to Book Value: 5.4 (Very Expensive)
- Return on Equity: 18.3%
- Profit Growth (1 year): +15.2%
- Dividend Yield: 3.6%
- Stock Returns (1 year): +0.16%
- Technical Grade: Bearish
These figures underpin the current cautious stance, balancing solid profitability and dividend income against valuation concerns and technical weakness.
Conclusion
In conclusion, Pfizer Ltd.’s 'Sell' rating by MarketsMOJO, last updated on 29 December 2025, reflects a comprehensive assessment of the company’s current fundamentals and market position as of 01 February 2026. While the company demonstrates good quality and positive financial trends, its very expensive valuation and bearish technical signals suggest limited upside potential. Investors should weigh these factors carefully when considering Pfizer Ltd. for their portfolios, recognising that the rating advises prudence rather than outright avoidance.
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